What tax does offshore companies pay?

[zohoman]

Sounds like a very stupid question so forgive me my friends. I need to know what tax rate does a regular offshore company pay?

What tax do you pay from the money you earn in your company? from profits actually.

Are there offshore company countries that really don't pay tax to the tax office locally but only to the owners tax country?

 

[vitomerchant]

No they don't pay tax!

 

[zohoman]

but I read that some offshore jurisdictions a company has to pay tax how comes?

 

[happyjohn]

Well there are indeed offshore jurisdiction where you have to pay tax also if you don't do business there locally. For instant in Cyprus a Company pay 12,5% corporate tax from profits generated. I don't know if this is the exact correct tax rate today, has been some time since I last had use of it, but there are also other jurisdictions like Malta and the UK.

Generally speaking if you have a Belize Company and you do business in Belize you will have to pay corporate tax in Belize, the only reason for why you don't have to pay tax is that the Company usually is not doing business locally in Belize so it's registration is International Business Company with 0% tax to be paid.

Hope it make sense.

 

[yalil]

Offshore companies don't pay tax as long they don't do business locally it seems! So you still need to pay personal tax from profits you take out of the company this is to be paid to your local tax office where your residence.

 

[JohnLocke]

You can find all tax rates and regulations for the Seychelles here, Seychelles Tax System | World.tax if you go to the main site you can find tax rates and regulations for most offshore jurisdictions around. General speaking a IBC does not pay any corporate tax because it doesn't do business locally.

 

[ghostbuster]

Thanks for the link Admin. great you have the time to help people like me not knowing anything

 

[negon]

usually they don't pay tax that's the meaning of all of it.

 

[ghostbuster]

usually they don't pay tax that's the meaning of all of it.

okay but they pay tax if they do business locally, selling stuff locally right?

 

[deadpool]

There are different types of taxes. To answer your question OP, yep. In some countries you would be entitled to pay tax.

 

[myshufflemix]

They need to pay corporate tax.

 

[Sam anderson]

It depends from company to company if your company is on a very small scale and only few workers then you have to pay less tax

 

[Sansa]

Some doesn't pay tax and some does pay but with the least amount of tax as much as possible.

 

[GoGoldPro]

No tax what so ever, learn more here Offshore company - Wikipedia, the free encyclopedia

 

[fxmaster]

No tax what so ever, learn more here Offshore company - Wikipedia, the free encyclopedia

This is what most of us have been looking for and like to hear I think

 

[poketax]

As most already replied, offshore companies don't pay tax or only maybe 2% if it is for other tax reasons!

 

[uplana]

Offshore corps can pay tax in order to benefit from double tax treaties!

 

[drillbill]

It depends, sometimes it's not bad to let your offshore company pay tax (if possible) locally where it is incorporated. So you may make use of double tax treaties which can help you reduce the total corporate tax to be paid.

 

[londonfalls]

Like many other offshore companies and jurisdiction they don't pay any tax or only little tax because of benefits in tax matters.

 

[RamsayB]

I just wondered how to these offshore countries live off from these businesses if they don't pay taxes? I can't believe a country could benefit from lower tax.